Skydive the Beach's controversial proposal to build a new administration building at the edge of Stuart Park is not certain, according to Wollongong councillor David Brown.

The new building is proposed for the space between the trees near the George Hanley Drive and Kembla Street intersection.

The proposed building, which would be paid for by Skydive the Beach, would cover 400 square metres and include a reception and waiting area, a merchandise shop and coffee kiosk, as well as staff offices and parachute packing and storage space.

Cr Brown said there were two separate areas that needed to be dealt with before the building could be constructed.

The development application needed to be accepted and then a new lease had to be granted for the site, he said.

The development application is now being assessed by council officers. It will then be sent to the Independent Hearing and Assessment Panel, which is open to the public and views for and against a proposal can be presented.

"Because it's a development application worth more than $1 million on council land, it must go to our Independent Hearing and Assessment Panel," Cr Brown said.

"There are two streams effectively - council officers assess it and say yes or no on whether they think it should go ahead, and then the independent hearing panel also assesses it."

Should the decision be made to approve the development application, this would not mean Skydive the Beach could start building.

"The applicant then needs to get a lease from council," Cr Brown said. "They can't build the building if they don't have a lease for the land. That will come before council."